PNOC draws up new guidelines for LNG terminal

MANILA, Philippines -  State-run Philippine National Oil Co. (PNOC) is drawing up guidelines to receive proposals from the private sector for its planned liquefied natural gas (LNG) terminal. 

 “We have to set guidelines again from the board,” PNOC president Reuben Lista said in a text message when asked if the company had received offers to build the LNG terminal.

This was after Energy Secretary Alfonso Cusi allowed the private sector to  participate in building the country’s LNG hub.

Lista said the PNOC board will meet on Tuesday to lay down the guidelines.

The Department of Energy (DOE) has tasked PNOC to develop an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatt (MW).

Lista earlier said the state-owned firm is looking at a government-to-government (G2G) partnership for the project, using $640 million worth of banked gas and land as forward equity. 

It has received at least 26 interested partners but only six have submitted proposals and these are from China, Indonesia, Japan, Singapore, South Korea and the United Arab Emirates (UAE).

However PNOC was unsuccessful in finding the right partner before its July 30 self-imposed deadline.

One company interested in the joint development of the LNG terminal is First Gen Corp. of the Lopez Group.

The company has yet to have formal discussion with the government about the unsolicited proposals but it is definitely interested to participate, according to First Gen president and COO Francis Giles Puno.

First Gen has previously announced that it will aggressively pursue its $1-billion LNG terminal within its clean energy complex in Batangas until the DOE announced plans to spearhead the construction of the country’s LNG hub.

When the LNG terminal is completed, the Philippines will not only secure continuity of power supply but also meet its goal of becoming another LNG hub in Asia, complementing those in Japan and Singapore.

The Malampaya gas field is expected to be depleted by 2024. Currently, around 3,500 MW of power plant capacity is dependent on the country’s sole natural gas source.